I have a Nexus 5 and the phone shows that I have consumed nearly 2GB space for apps.

My question.

Can I use the entire storage space on my Nexus 5 32GB for apps? Or there is a partition and apps can only be installed on a smaller portion of that?

Friend claims that on devices with internal storage, apps would automatically start using the bigger partition (in case of Knight) for data storage. And this is why 1.5GB is enough. He also claims that Nexus 5 has a 2GB restriction for apps. Anything above is then stored in the second partition.

What it looks like Micromax did was carve up the total 32GB of storage. They gave 1.5GB to the OS (base os, apps, browser cache, etc) and are treating the other 25GB as if it was a SD card.

The Nexus has 16GB of storage and IIRC that is a "true" 16GB, nothing is specifically carved up for OS or media. So if you can manage to install 16GB of apps, then yes, all of that space will go to apps.

The 2GB restriction might be old news when the Market/Play limited total app size. It's since moved up to 4GB in total app size.